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Old 03.12.2014, 14:59
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Tax declaration on overseas asset.

Hi there this is my first post. be kind.


I am a little confused about this situation, maybe somebody here has had to make the same declaration.


I own a small flat in another country (with a mortgage) from before I was married to a Swiss citizen.

  1. Do I have to declare this as a joint asset at its current value?
  2. If so what sort of tax % would I be looking at paying on it?
  3. Is there an amount that is exempt from taxation in Switzerland?
  4. If I am receiving rent into an overseas bank account, but this is being used to cover mortgage repayments, maintenance and property management etc. do I need to declare this as income?


I hate the idea that I have to pay tax on my flat in two different countries, especially if I am not a citizen of one of those countries.


I hope someone can fill me in on this situation, I did look at previous posts but couldn't find a match.


Cheers
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Old 03.12.2014, 15:08
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Re: Tax declaration on overseas asset.

First thing is to see where you live according to the tax authority. That sounds easy but may not be the case if you are travelling, still have access to that house, etc. I guess that being married to a Swiss you both are living in Switzerland and pay taxes here. As the house is rented the tax authority in the other country is not tempted to say you live there but you may need some proof (contract).

Second thing is that you need to declare all income and all fortune in Switzerland. So including the house, rent and also the mortgage.

Third is that the other country also will try to tax you as real estate is always taxed in the country where it is.
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Old 03.12.2014, 17:02
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Re: Tax declaration on overseas asset.

Exactly, its unlikely that you will be double taxed on the house so don't worry
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Old 03.12.2014, 17:09
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Re: Tax declaration on overseas asset.

Tinkiwinki, where do you get that info from ???

We have property in the UK and we pay local taxes there for services- but the property is declared here for tax purpose and we pay tax on it as part of our 'fortune' (lol, that does make me laugh)- here in Switzerland, NOT in the UK, as we are tax resident here and there is no double taxation.
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Old 03.12.2014, 17:16
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Re: Tax declaration on overseas asset.

Quote:
Tinkiwinki, where do you get that info from ???

We have property in the UK and we pay local taxes there for services- but the property is declared here for tax purpose and we pay tax on it as part of our 'fortune' (lol, that does make me laugh)- here in Switzerland, NOT in the UK, as we are tax resident here and there is no double taxation.
This seems normal to me. In theory, since the UK is taxing you locally the Swiss dont bother taxing you on those things. If the UK had a wealth tax (which as far as I know they dont) you would be able to deduct it from the wealth tax you pay here
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Old 03.12.2014, 17:19
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Re: Tax declaration on overseas asset.

Not sure I get your message. What do you mean 'they don't bother'? We are legally required to declare the flat we own in the UK to Swiss taxes, and do pay tax on it here- and yes, it is normal. We only pay local taxes for services in the UK.
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Old 03.12.2014, 19:21
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Re: Tax declaration on overseas asset.

Quote:
Tinkiwinki, where do you get that info from ???

We have property in the UK and we pay local taxes there for services- but the property is declared here for tax purpose and we pay tax on it as part of our 'fortune' (lol, that does make me laugh)- here in Switzerland, NOT in the UK, as we are tax resident here and there is no double taxation.
I believe others have already answered the question. You are registered as an owner in the country where you have your house. There may or may be not any treaties with that country and Switzerland and all these bilateral agreements are different. Sell the house and see what happens next
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Old 03.12.2014, 19:52
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Re: Tax declaration on overseas asset.

I agree with 22 yards. Get a good accountant to do your first tax return. I did that and got him to explain what he had done. There were several things that I might have missed which he found for me. After that I reckoned I could probably do it myself.
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